Legal Business

European expansion – A&O launches in Barcelona with hire of Freshfields partner

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Allen & Overy (A&O) has pointed to the growth and profitability of its Madrid office and the recovery of the Spanish economy for its decision to launch in Barcelona, with the hire of local corporate partner Antoni Valverde from rival firm Freshfields Bruckhaus Deringer, announced today (4 February).

Valverde, who made partner at Freshfields in 1997 and became co-head of the firm’s private M&A group from 2001 to 2009 and the leader of the Spanish corporate group from 2007 to 2010, focuses on private M&A and has acted for some of the key Spanish players on outbound M&A, including acting for Barcelona-based infrastructure operator Abertis on the €1.5bn acquisition of OHL Brazil in August 2012.

Valverde’s hire comes following a period of growth for the Magic Circle firm’s Madrid office over the past six years, including opening a litigation department with the appointment of Clifford Chance (CC) partner Antonio Vázquez-Guillén in 2008; hiring Antonio Martinez from Uria Menendez as a partner and head of the antitrust practice in 2009; and taking on Pablo Mayor also from CC to the corporate group in 2010 to further expand A&O’s public law offering.

Recent deals for the Spanish office include advising on Iberdrola’s sale of its 50% stake in British nuclear consortium NuGen to Japan’s Toshiba and on the €2bn equity investment made by Qatar Holding; as well as Bridgepoint Capital on the acquisition of a portfolio of wind energy assets from listed Spanish construction company ACS.

A&O’s Madrid managing partner Andrew Clark told Legal Business that the new office will be integrated with the firm’s existing office in Madrid and managed as one practice, with an aim to grow headcount across both offices in the next two years. The Madrid office currently has ten partners across its finance, corporate, litigation and tax offering.

The launch comes as recent figures suggest that M&A activity in Spain is picking up both in volume and value, with A&O’s own M&A index last month stating: ‘Excluding deals in the financial sector, driven by the restructuring of the Spanish banking system, the number of deals still increased by 24% in 2013 while deal value was up by over 50%.’ Firms including Magic Circle rivals CC and Freshfields Bruckhaus Deringer have an office in Barcelona.

A&O global managing partner Wim Dejonghe said: ‘Spain’s economy grew at its fastest pace in almost six years in the final quarter of 2013 and this is reflected in the success and profitability of our Madrid office. Today’s news underlines the belief that there is a significant opportunity for us to further expand in Spain.’

Iñigo Gómez-Jordana, senior partner of A&O Spain added: ‘Spain’s latest M&A figures point towards recovery and new opportunities lie ahead for both our Madrid and Barcelona offices for all our practice areas. We look forward to Toni’s contribution, which will further strengthen our Spanish and international corporate offering, a strategic priority for the firm.’

jaishree.kalia@legalease.co.uk

Legal Business

Senior hires: KPMG appoints DLA partner as Manchester legal head as A&O and NRF lose partners to HogLove and Vedder Price

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As KPMG looks to expand its legal services practice the Big Four accountant has hired DLA Piper corporate partner Nick Roome to head its legal services arm in Manchester in what it says is the first of a series of hires planned over the course of this year.

Roome, who has broad corporate, private equity and commercial legal expertise with a focus on the north of England and international markets, qualified with Addleshaws in 2000 before moving to DLA Piper’s Manchester office in 2005. He will start his new role in the late Spring.

KPMG’s legal services practice is a well-established part of KPMG’s wider UK tax practice and has worked with the tax team nationwide for a number of years. The Manchester legal services team currently includes a four-strong tax litigation team, which has been in place for over ten years. In addition, KPMG has a team of advisers on corporate and employment law who help provide multi-disciplinary tax services to clients where required.

Commenting on his appointment, Roome said: ‘I am very excited to be making the move from a law firm to an accounting firm with such a diverse and varied portfolio of clients and projects. KPMG already has a well-established legal services practice and I look forward to helping it grow and develop further in the North.’

Roome is the first of around four or five legal appointments expected in KPMG’s Manchester legal services team.

His hire comes shortly after Legal Business reported in September that KPMG is considering its options under the Legal Services Act (LSA) to convert to an alternative business structure (ABS) in a bid to expand its legal services capability.

EY also said at the time that it had the position ‘under review’ and PwC is understood to be considering its position. Deloitte was the only one of the Big Four accountants to deny any plans to set up an ABS.

Meanwhile, in the City, current global head of aviation at Norton Rose Fulbright, Neil Poland, becomes the latest partner to leave the firm as he joins Chicago-headquartered Vedder Price’s global transportation finance practice in London next month.

Poland, who is rated as ‘top class’ by the Legal 500, acts on behalf of financial institutions on capital markets financings, as well as bank syndicates on the financing of European locomotives and leading passenger rolling stock operating companies (ROSCOs).

Key clients for the Norton Rose aviation team include easyJet, Emirates, Flybe, Malaysian Airline Systems Berhad, Air Tanker Services, Amentum Capital, and Orix Aviation Systems.

‘We are thrilled to have Neil join us,’ said executive committee vice chair and chair of the firm’s global transportation finance team Dean Gerber. ‘Neil has extensive experience in the aviation and rail industry on a global-scale that will deepen Vedder Price’s practice and strengthen our growing London office.’

Prior to joining Norton Rose, Poland worked for the London offices of Magic Circle firms Slaughter and May and Clifford Chance.

Other high-profile departures from Norton Rose in recent months include Michael Grenfell, who joined the senior leadership team at the newly created Competition and Markets Authority last November.

November also saw longstanding antitrust partner Mark Jones leave for Hogan Lovells followed in the same month by energy partner and former head of nuclear services Fiona Reilly, who left for PricewaterhouseCoopers (PwC) to become a director in the nuclear energy team to develop the global energy practice.

In other high profile moves, former Allen & Overy (A&O) corporate partner Don McGown is to join Hogan Lovells corporate practice in early February.

McGown, who has been with A&O since 1990, has acted for a number of high profile clients including 21st Century Fox on the US$10 billion spin-off of its publishing and print businesses, and DS Smith on its US$2 billion reverse acquisition of SCA Packaging.

He primarily advises on international M&A and corporate restructuring and has significant sector expertise in telecommunications and media, and financial services.

Commenting on McGown’s arrival Andrew Skipper, global co-head of Hogan Lovells’ corporate practice, said: ‘Continuing to strengthen our excellent London corporate practice is important for us and Don’s arrival will bring additional high quality board level experience and international perspective to our London team.

‘Don is a highly effective and skilled practitioner with the right skillset, market standing and collegiate approach. He is the perfect fit for our corporate practice with its global spread, in-depth industry knowledge and expertise in highly regulated sectors.’

francesca.fanshawe@legalease.co.uk

Legal Business

Deal Watch: CC, Freshfields and A&O act on Liberty Global’s €6.9bn acquisition as Dentons and LG float Hurricane

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Three Magic Circle firms have scored lead advisory roles on Liberty Global’s €6.9bn acquisition of Netherlands’ largest cable operator Ziggo, with Freshfields Bruckhaus Deringer, Clifford Chance (CC) and Allen & Overy (A&O) all acting on the deal.

A&O’s Amsterdam-based corporate partner Annelies van der Pauw led for Liberty Global and competition partner Paul Glazener worked on the antitrust aspects, as the joint entity will have around 90% of the regulated Dutch fixed line cable market, while CC’s finance partner Mark Huddlestone headed up the team to advising the lenders.

Longstanding Liberty Global adviser Ropes & Gray led on financial aspects for the company in London, with partners Tania Bedi and Jane Rogers advising alongside the firm’s London co-managing partner Maurice Allen.

The firm has also previously represented the international cable company on the financing of its €3.1bn acquisition of Germany’s third largest cable TV operator Kabel Baden-Wuerttemberg from Swedish private equity group EQT Partners AB, in a deal where the antitrust permission to go ahead with the deal was overturned by the German courts in August last year.

At Freshfields, a four-strong Amsterdam-based team advised Ziggo led by partner Jan Willem van der Staay, while Shearman & Sterling acted for Ziggo as legal counsel on financing matters, with City-based European capital markets partner Apostolos Gkoutzinis leading the team.

New York-headquartered Shearman previously acted for Liberty Global on its $23.3bn acquisition of Virgin Media in 2013.

Subject to the necessary approvals, Liberty Global and Ziggo anticipate that the offer will close in the second half of 2014.

Elsewhere, Dentons and Lawrence Graham have advised Hurricane Energy, which focuses on oil reserves in reservoirs beneath the North Sea and has already signed investment and drilling deals with BP and Transocean, as it prepares to float on the AIM market of the London Stock Exchange with a value of £272m.

Hurricane, which is expected to start drilling in the second half of 2014, was led by Dentons corporate partner Jeremy Cohen, alongside energy partner Danielle Beggs and environment partner Sam Boileu.

Cenkos Securities acted as Hurricane’s nomad and broker, with Lawrence Graham’s head of corporate Geoff Gouriet advising alongside senior associates Rebecca Gordon and Jenna Beever.

sarah.downey@legalease.co.uk

Legal Business

Blue sky thinking – A&O initiative to adopt and roll out new business ideas from clients

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Following on from its roll out of high-end contract lawyer service Peerpoint last November, Allen & Overy is continuing to challenge and develop its model with the introduction of an initiative to adopt new business practices from its clients.

The Magic Circle giant, led by senior partner David Morley, has pulled together five panels of between five and eight partners covering Asia Pacific; Middle East and Africa; Continental Europe; the US and the UK, to target its clients for ideas not usually seen in the legal sector across the entire business function including finance, human resources, strategy and IT.

The new initiative, dubbed ‘learning from clients’, will see each panel present five ideas at the global partners’ conference in Dubai at the beginning of March, led by Morley. The idea is to whittle down the submissions to five strong business proposals, which will then be put forward to the board to consider for implementation.

Morley said: ‘We are searching for ideas that have not been used in the legal industry. I approached partners around the whole firm as we want to cross-fertilise what partners in the Middle East can come up with, in comparison to partners in the US for example.’

The initiative comes after the firm in November became the first top-tier outfit to launch a high-end contract lawyer service for major clients, overseen by managing partner Wim Dejonghe. Peerpoint will see A&O-vetted freelance lawyers deployed to handle a range of fixed-term needs, including covering maternity leave or fulfilling secondment requests. The service will provide lawyers ranging in experience from the equivalent of a senior associate to partner level, drawing initially on former A&O lawyers who want to work flexibly.

The team currently has around 10 lawyers, and aims to grow to some 20 to 30 members in the coming weeks. Lawyers will be employed on a contract basis and paid the pro-rata equivalent of a full-time employee.

The firm has been known to encourage its partners to think outside of the box in the run up to conferences, including launching a project called ‘the long view’ in the run-up to its May 2012 partnership conference, in which five groups of partners from around the world were asked to sketch out what legal life will look like in 2020.

However, this time the iniative may have a significant impact on A&O’s own way of doing business and Morley added: ‘We want to generate a different set of ideas and take them out of context. Some will work and some won’t, but we need to get them on the table.’

jaishree.kalia@legalease.co.uk

Legal Business

Strategic recruitment: A&O hires employment team in Paris

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Allen & Overy (A&O) has underlined the importance of its global employment practice with a significant hire in France, recruiting highly regarded partner Claire Toumieux to head its employment and benefits department in Paris.

Toumieux joins from 18-partner, top-tier local employment firm Flichy Grangé Avocats where she was a partner, along with a team of three associates – Susan Ekrami, Alexandre Couvreur and Alexandre Orts. A recommended partner in The Legal 500 EMEA, Toumieux has experience of representing both listed and unlisted corporate groups and investment funds through mergers and acquisitions, collective bargaining agreements and reorganisations.

She was re-elected for a second two-year term as vice chair of the European Employment Lawyers Association (EELA) in September. She joined Flichy Grangé in 2000, before which she was at Gide Loyrette Nouel for four years.

A&O Paris managing partner Jean-Claude Rivalland said: ‘We are truly delighted to welcome Claire. Now, more than ever, employment law is one of the central concerns of our clients and is a key part of our firm’s growth strategy. Claire is well-known and highly respected as a lawyer in Paris. We are confident that she will bring a fresh impetus and perspective, and that, with the support of our well-established and experienced team, she will succeed in strengthening our position in this area.’

The hire of the new team brings A&O’s lawyer headcount in Paris to over 150, including 38 partners.

jaishree.kalia@legalease.co.uk

Legal Business

Commercially minded: Allen & Overy chooses BPP for business-focused LPC

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In what constitutes a major overhaul of its training programme, Allen & Overy (A&O) has announced today (16 December) that it will work with BPP law school to provide its young lawyers with an enhanced Legal Practice Course (LPC) with a Masters business component from 2015. The firm has also chosen BPP to run its Graduate Diploma in Law course from September next year.

The change in legal training institution came after a competitive tender process in which BPP was selected over the firm’s incumbent provider, the University of Law.

The firm’s new LPC aims to ensure that its lawyers develop commercial awareness as well as legal expertise. The business modules will be fully incorporated into the LPC and be taught via a combination of online and face-to-face classes, designed exclusively for A&O.

‘Launching this Masters programme ensures we continue to lead the market on training: this will further improve our junior lawyers’ business knowledge and their ability to provide our clients with commercially relevant advice. This will better equip them for a career in commercial law and provides the added benefit of a Masters-level qualification,’ said David Campbell, a partner and training principle at the firm.

On completion of the course, not only will trainees receive their LPC but during their training contract at the firm, trainees will also carry out a business intelligence project on a relevant topic, which may be an industry sector, a client or other related subject. After completing this element of the training contract, they will receive an MA(LPC with Business).

A&O recently announced its spring newly qualified lawyer retention rate stood at 84% but in the summer announced that it would reduce its trainee intake by 15% from 2015. The firm currently takes on 105 trainees a year.

david.stevenson@legalease.co.uk

Legal Business

Clifford Chance wins double pharma mandate as Merck buys AZ Electronic Materials and Amdipharm buys Acbur

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With the pharmaceutical industry driving a number of recent high value M&A deals, Clifford Chance has won mandates on two significant instructions in the sector, including advising AZ Electronic Materials on a £1.57bn cash offer by German pharma giant Merck.

The transaction was led by corporate partner Tim Lewis and includes antitrust partner Alex Nourry, Luxembourg corporate partner Pierre Gromnicki, employee benefits partner Sonia Gilbert and tax partner David Harkness.

Allen & Overy (A&O) advised Merck, with a team led by corporate partners Richard Browne and Michael Ulmer along with Luxembourg corporate head Mark Feider.

The deal will see AZ shareholders receive 403.5 pence in cash for each AZ share, which values the share capital of AZ, which is a global producer of high quality, high-purity specialty chemical materials for the electronics market, at approximately £1.57bn and suggests an enterprise value of around £1.75bn.

As AZ is incorporated in Luxembourg and listed on the London Stock Exchange (LSE), the offer is subject to the shared jurisdiction of the Takeover Panel in London and the Luxembourg regulator.

CC previously advised AZ on its £441m initial public offering in 2010, led by capital markets partners Adrian Cartwright and Iain Hunter.

Last week also saw CC announce its role advising Amdipharm Mercury on its $56m acquisition of Sweden-based specialty pharmaceutical company Abcur. Amdipharm is an international specialty pharmaceuticals group formed from the merger of Amdipharm and Mercury Pharma. Clifford Chance acted for private equity firm Cinven when it acquired Amdipharm and Mercury Pharma in 2012.

The CC team advising Amco in the Abcur acquisition was led by corporate partner Andre Duminy and Nordic firm Roschier advised on Swedish law aspects.

Abcur was advised by Swedish firm Lindahl with a team led by corporate partner Johan Karlefors, who specialises in employment life sciences and transport.

Other big pharma deals over the past two months include Novartis’ $1.68bn sale of its blood transfusion diagnostics unit to Barcelona-based Grifols, with A&O acting for Novartis and Proskauer Rose and Osborne Clarke’s Spanish arm for the buyer.

Statistics last month from Dealogic showed that pharma deals have dramatically outperformed the wider global M&A market.

david.stevenson@legalease.co.uk

Legal Business

Revolving Doors: Strategic growth for A&O, Eversheds, Wiggin, Dentons, Field Fisher and Olswang

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In the last major round of hires before 2013 draws to a close, Allen & Overy (A&O) has boosted its international competition capability while Eversheds has expanded its City tax team and firms including Wiggin, Dentons, Field Fisher Waterhouse and Olswang have this month made strategic lateral hires across the media, energy, real estate and insolvency space.

At the start of December, A&O hired Herbert Smith Freehills (HSF) competition partner Peter McDonald to head its Australian antitrust and competition practice. Previously a senior officer at the Australian Competition and Consumer Commission (ACCC), at HSF McDonald advised clients in the energy, mining, industrial, retail and financial services sectors.

McDonald, who is a member of the Competition and Consumer Committee of the Law Council of Australia, has experience of covering transactional advice, merger clearances, consumer and regulatory issues and defending clients in investigations and legal actions by the ACCC.

A&O co-head of the global antitrust practice Elaine Johnston said: ‘Peter’s appointment furthers our strategy to put in place a top-quality team of antitrust lawyers in the three key global regions: Asia Pacific, Europe and the United States. This ensures that we can offer our clients the critical advice they need on global antitrust, regulatory and litigation issues.’

The move comes after A&O this summer boosted its global antitrust practice with the hire of Visa Europe’s general counsel (GC) and executive vice president and company secretary Vanessa Turner as a partner in Brussels.

On the Continent, the burgeoning Paris market saw Dentons hire energy duo Ramin Hariri and Vincent Lacombe a week ago (3 December) from France’s largest law firm, Fidal, to boost its energy offering with a particular focus on Francophone Africa.

The duo focus on energy and project finance across the oil, gas, mining and infrastructure space in France, Africa and the Middle East and have experience of working under ‘OHADA’ – the organisation for the harmonisation of business laws adopted by 17 West and Central African nations.

Dentons Europe chief executive, Dariusz Oleszczuk said: ‘They work for a number of large energy and utilities companies and governments, which fits well with Dentons’ overall Africa strategy. In particular, they bring strong expertise under OHADA, which is greatly appreciated by clients. I am confident that the addition of Ramin and Vincent will not only enhance Dentons’ existing client relationships in Francophone Africa, but will also provide many new opportunities throughout our global firm.’

The move followed Olswang’s tie up in Germany with insolvency lawyer Christian Köhler-Ma, to launch ‘Olswang Restructuring Solutions’ – a business aimed at providing counsel to companies, managers, shareholders and creditors during crises and near-critical situations in Germany. The new consultancy service will launch on 1 January 2014.

Previously, Köhler-Ma was senior partner at Leonhardt Rechtsanwälte in Berlin and his clients have included Systracom Bank AG, Gameplay Deutschland GmbH, nuclear power plant engineering company Kraftwerks-und Anlagenbau AG and internet advertising agency I-D Media AG.

In the City, meanwhile, a key in-house mover over the past fortnight was Deloitte’s heavyweight tax litigation director Giles Salmond, who resigned to head up Eversheds’ City VAT disputes and indirect taxes practice.

As an indirect tax litigation specialist, Salmond has represented multinationals and UK PLCs both before the UK courts, tribunals and the European Court of Justice. Previously, he acted for Condé Nast in a leading VAT case and he was also involved in the first UK tax mediation.

Eversheds tax head David Jervis said: ‘Giles has developed a strong reputation in the market having acted for a wide range of clients across all sectors including consumer business, leisure and the financial services sector, having been involved in a number of high profile disputes with the tax authorities.’

Within the media law sector, boutique firm Wiggin this month recruited TV lawyer Medwyn Jones to join its TV group as a partner. Medwyn joins from Harbottle & Lewis, where he has been a partner for 20 years, and has advised some of UK’s leading drama production companies (including the producers of Sherlock, Call The Midwife, and the recent BBC drama series The Escape Artist), as well as on-screen and writing talent, rights owners, events owners and agencies.

He starts his new role at Wiggin in January. The hire follows that of Ted Shapiro, who was previously head of legal at the Motion Picture Association, who joined as a partner at the beginning of 2013.

Wiggin co-head of the TV group Charles Moore said: ‘In the advent of the UK TV tax credit, which Wiggin helped initiate, our TV practice has never been busier. We are already working with US networks and cable companies, UK broadcasters, banks and other financiers, as well as UK independent production companies, on a raft of UK and international productions and other ventures. With Medwyn joining our team, we will have a combined UK TV expertise and client base that is second to none.’

Also in the City, Field Fisher Waterhouse strengthened its real estate investment offering with the hire of partner Rhodri Pazzi-Axworthy from Nabarro, who will join on January 6 and will be based in the firm’s London office.

Freshfields Bruckhaus Deringer-trained Pazzi-Axworthy became a partner at Nabarro in 2006. He also chaired Nabarro’s European Alliance’s Real Estate Group. Prior to that, he worked as a partner at Maxwell Batley between 2002 and 2006. He has experience of representing investors and developers, and advising on the real estate aspects of complex corporate and finance driven transactions.

jaishree.kalia@legalease.co.uk

Legal Business

A&O the first top-tier player to forge contract lawyer service

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Freelance lawyers to cover fixed-term needs.

For all the talk of innovation in the profession, experimentation with new models has so far been more evident at mid-pack players like Berwin Leighton Paisner (BLP) and Eversheds than elite London or New York advisers.

However, as Legal Business revealed on 25 November, Allen & Overy (A&O) has become the first top-tier outfit to challenge that orthodoxy with the Magic Circle firm launching a high-end contract lawyer service for major clients.

Legal Business

Ashurst’s Lloyd set to join Allen & Overy subject to partner vote

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Ashurst’s high profile global head of corporate Stephen Lloyd appears set to join Allen & Overy (A&O) after resigning from the newly-merged firm in November.

While Lloyd’s move is still subject to a vote by the Magic Circle firm’s partnership, one corporate partner at A&O told Legal Business: ‘It’s not final, but it’s very likely. We are pretty excited about him joining. He is a really good operational lawyer and a good cultural fit.’

If the vote goes through, Lloyd will join the 2,700-lawyer firm’s corporate practice subject to any covenants he is held to by his former firm.

The corporate rainmaker’s hire will be a major boost to A&O’s corporate team, with which his private equity client base has a strong synergy and overlap including leading investment group Apax Partners. ‘There is a lot of potential to develop,’ added the partner.

Lloyd became a partner at Ashurst a decade ago and was named London corporate managing partner in 2009. He was appointed as global head of the corporate practice in July 2010 and has experience of advising companies, equity finance providers and investment banks on cross-border M&A and corporate finance transactions, with a strong focus on the private equity, healthcare and real estate sectors.

He resigned from Ashurst early in November, within weeks of its chairman election vote that saw incumbent Charlie Geffen lose to litigator Ben Tidswell and of its financial integration with Ashurst Australia in September.

A&O declined to comment.

jaishree.kalia@legalease.co.uk